TORONTO, ONTARIO, Apr 20, 2010 (MARKETWIRE via COMTEX) — Queenston Mining Inc. (CA:QMI) (FRANKFURT: QMI)(STUTTGART: QMI) (“Queenston” or the “Company”) is pleased to announce the completion of the amalgamation of Vault Minerals Inc. (“Vault”) with 2236019 Ontario Inc., a wholly-owned subsidiary of Queenston. The newly amalgamated company will continue under the name Vault Minerals Inc. as a wholly-owned subsidiary of Queenston. As a result of the amalgamation, Queenston’s land holdings in the Kirkland Lake gold camp now have expanded to 29 individual properties containing approximately 19,200 hectares.
Under the terms of the Amalgamation, Queenston issued approximately 4.1 million Queenston common shares to the former Vault shareholders, with Vault shareholders receiving one Queenston common share for every 10 common shares of Vault. Queenston now has approximately 68 million common shares outstanding, of which approximately 6% are held by the former shareholders of Vault. All of the issued and outstanding shares of Vault have been cancelled and will be delisted from the TSX Venture Exchange.
The benefits to Queenston of the amalgamation include the addition of six properties (221 mineral claims) strategically located adjacent to existing Queenston holdings, creating a dominant land position covering approximately 190 square kilometers along the major gold trends in the camp. The location of the Vault properties is outlined on the map linked to this news release and is available on the Company’s website.
To view the Kirkland Lake Property Map, please visit the following link: http://media3.marketwire.com/docs/QMI0420.pdf.
Charles Page, President and CEO of Queenston commented, “I welcome to Queenston our new shareholders from the Vault transaction. This is indeed a very exciting period for our Company as the addition of the Vault assets to our core holdings in Kirkland Lake has solidified a powerful land position in one of Canada’s great gold camps. Our dominant land holdings combined with a strong treasury support continued ongoing exploration leading to our goal of returning to producer status. I extend a warm welcome to Michael Sutton, P. Geo., Daniel McCormack, P.Geo. and the staff of Vault who have guided their company’s success and will be joining our exploration team. I would also like to acknowledge and applaud the contribution of Joseph Horne, Vault’s outgoing President, who has for years been a huge supporter of the Kirkland camp and shared our enthusiasm and vision in combining the two companies.”
The three key Vault properties are Lebel, Gauthier and Kirkland. The Lebel property located in Lebel Township comprises 74 claims that cover a consolidated land package including the Bidgood Mine that produced 165,000 oz of gold (“Au”) at a grade of 9.2 grams per tonne (“g/t”) Au from 1934-51. The property hosts both narrow, high-grade and wide, low-grade gold mineralization in multiple structures including the Blue Vein and Boundary Zones. The Blue Vein located 700 m south of the Bidgood Mine is hosted in a mineralized structure that has been traced a distance of 800 m where previous drilling in 2003-04 returned intersections of 11.6 g/t Au over 2.8 meters (“m”) (hole MH-11), 30.6 g/t Au over 1.3 m (hole MH-03) and 18.8 g/t Au over 0.9 m (hole MH-01) to a vertical depth of 80 m. Recent drilling at the Blue Vein returned 27.8 g/t Au over 1.4 m in hole BV10-04. The Boundary Zone, located 1,000 m east of Bidgood on the eastern portion of the property, represents a 150 m wide zone containing multiple zones of gold mineralization. Recent drilling here intersected 3.4 g/t Au over 11.4 m (hole B09-04) and 1.7 g/t Au over 14.5 m (hole B09-13). The new drilling at the Blue Vein and Boundary Zone were announced in a Vault news release dated March 4, 2010. An additional 12 drill holes have been completed by Vault on the Lebel property and will be announced upon final tabulation of assay results. Also present on the Lebel Property is the new Quartz Stockwork Zone that has been defined to date by three drill holes completed by Vault in 2008. The zone represents a 1,600 m long mineralized corridor hosted in a porphyry stock that contains a quartz-stockwork zone averaging 114 m in core intercepts containing anomalous gold and copper values. The best mineralization is reported in hole LB08-35, intersecting two intervals assaying 0.52 g/t Au over 17.8 m and 0.83 g/t Au over 11.5 m.
The Gauthier Property contains 88 mineral claims located in northern Gauthier Township. It is west and adjacent to Queenston’s Upper Beaver gold deposit that contains a NI 43-101 mineral resource of 1,373,500 t grading 8.5 g/t Au (375,000 oz) with 0.43% copper (“Cu”) in the indicated category and 1,061,300 t grading 7.7 g/t Au (262,500 oz) with 0.39% Cu in the inferred category. The mineral resource was completed by Watts, Griffis and McOuat Limited of Toronto under the supervision of independent qualified person Michael W. Kociumbas, P.Geo. and the accompanying NI 43-101 Technical Report was co-authored by Rick Risto, P.Geo. The Gauthier property covers the Victoria Creek deformation zone for 5.3 kilometers (“km”) and contains a series of magnetic anomalies that surround circular magnetic lows analogous to the magnetic signature at Upper Beaver. North of the deposit in the vicinity of the magnetic anomalies, a Titan 24 anomaly occurs on the Upper Beaver property, and an Insight IP anomaly has been identified on the eastern portion of the Gauthier property. Similar anomalies led to the deep exploration success at Upper Beaver.
The Kirkland Property contains 8 key mineral claims located in Teck Township immediately south of the Lake Shore and Wright-Hargreaves gold mines owned by Kirkland Lake Gold Inc, (“KL Gold”) that collectively produced over 13 million ounces of gold. The property is less than 2 km east of KL Gold’s South Mine complex (“SMC”) ore body that is currently being explored, developed and mined at the Macassa Mine. Historic drilling from the Lake Shore Mine in 1962 onto the Kirkland Property intersected a series of quartz vein zones in faults and breaks at approximately 2,000 m below surface returning intersections of 413 g/t Au over 0.46 m, 183 g/t Au over 0.46 m and 91 g/t Au over 0.61 m. In 2005-06 Vault completed a surface drill hole on the property intersecting multiple anomalous gold structures. The Kirkland Property is strategically located south of the Kirkland Lake Main Break in a geological setting similar to the SMC.
Vault also recently completed an 8-hole diamond drilling program on the Goldbanks Property located in Teck Township targeting a series of gold structures including the “05” Break that was mined 825 m to the east at the Macassa Mine. Result from this drilling program will be reported when all assay results have been received.
Queenston is reviewing the newly acquired Vault assets with the objective to implement an aggressive exploration program in 2010 that will test targets on the Gauthier and Lebel properties. The initial focus will include geophysics and drilling on the eastern portion of the Gauthier Property where new Upper Beaver targets occur. Also, further drilling will be allocated to the Lebel property to target at depth the Blue Vein, Bidgood, Boundary and Quartz Stockwork gold zones.
Mr. William McGuinty, P. Geo., VP Exploration of Queenston is the QP responsible for reviewing this news release.
Queenston controls a significant land package in the Kirkland Lake gold camp now containing 29 properties, totalling approximately 19,000 hectares. The Company’s strategy is to return to producer status through the development of four 100% owned gold projects including the Upper Beaver, McBean, Anoki and Upper Canada. The Company is also carrying out deep exploration targeting the new South Mine Complex with joint venture partner Kirkland Lake Gold Inc. on the South Claims property, and on its 100% owned AK property. Queenston is well financed with $45 million in cash and has a 2010 exploration budget of $15 million, employing up to 12 diamond drill rigs on 10 individual properties.
Queenston’s Forward Looking Statement
Except for historical information, this News Release may contain certain “forward looking statements”. These statements may involve a number of known and unknown risks and uncertainties and other factors that may cause the actual results, level of activity and performance to be materially different from the Company’s expectations and projections. A more detailed discussion of the risks is available in the “Annual Information Form” filed by the Company on SEDAR at www.sedar.com.
Queenston Mining Inc.
Charles E. Page, P. Geo.
President and CEO
(416) 364-0001 (ext. 224)
Queenston Mining Inc.
Hugh D. Harbinson
(416) 364-0001 (ext. 225)
Queenston Mining Inc.
SOURCE: Queenston Mining Inc.
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